The first leg of the pension reform agreed between the Government and the social partners will come into force tomorrow, January 1, after passing the corresponding parliamentary process in recent weeks. The rule recovers the CPI as a reference to revalue benefits, promotes the delay of retirement and means the end of the so-called sustainability factor, -which has never come into force-, by the Intergenerational Equity Mechanism (MEI).
In this way, on January 1 of each year, pensions will be increased in accordance with the average annual inflation registered in the previous year. In 2022, the increase will be 2.5% for contributory pensions and passive class pensions. However, the increase will be 3% for beneficiaries of minimum pensions, non-contributory pensions and Minimum Vital Income.
Likewise, the so-called MEI is introduced, “a balanced, temporary and contingent tool to respond to the demographic challenge” for Social Security, with which it is expected to reactivate the Social Security Reserve Fund through a finalist contribution between 2023 and 2032.
In addition, measures aimed at voluntarily bringing the effective age closer to the ordinary retirement age are incorporated, establishing four ways: the review of early retirement, both voluntary and involuntary and due to activity, delayed retirement, active retirement and retirement forced.
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